TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

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YouSee 2011 at a glance • Strong growth in EBITDA driven primarily by an increase in Clear ARPU as well as customer growth and an ARPU increase in broadband. • Launch of a freedom of choice product, ‘Extra Channels’ giving customers a choice of 70 channels in addition to the basic package. • Continued focus on adding more value for customers through e.g. new app for iPads and iPhones, ‘100 films’ campaign, extra HD channels in TV packages, and increased download broadband speeds. • Wholesale business established following the regulator decision regarding YouSee’s obligation to offer coax BSA. So far, no requests have been received. About YouSee YouSee is the leading Danish cable-TV provider in terms of market share, and offers individual households and organised customers (such as antenna and housing associations) home entertainment and telecommunications solutions. YouSee’s network covers 58% of the Danish households. TDC Group Annual Report 2011 YouSee strives to deliver premium cable TV and a range of other products and services, including internet and landline telephony as add on services. YouSee’s main product, YouSee Clear, enables customers to choose from either standard unencrypted digital TV packages or the new freedom of choice product, ‘Extra Channels’. The increasing demand for flexibility is met through YouSee’s add-on product, YouSee Plus, giving customers a range of features, including start-over, pause and reeling functions. A video-on-demand feature allows customers to rent films without leaving their home. As a premium brand in internet services, YouSee focuses on value-added services such as YouSee Web TV, YouSee Play and the new TV access iPad and iPhone app as the main differentiators from its competitors. YouSee has a wholly-owned subsidiary, Dansk Kabel TV A/S, which is YouSee’s main contractor for establishing new local networks and connecting new customers. In 2011, YouSee established a wholesale business following a decision from the Danish Business Authority. 48
Performance in 2011 Revenue Despite an almost saturated TV market and strong competition in the broadband market, revenue in YouSee rose by 6.2% compared with 2010. YouSee Clear In 2011, the TV market was characterised by strong competition from non-premium providers. Combined with increased price sensitivity among customers, this enhanced pressure on premium providers such as YouSee. Despite the market challenges, YouSee managed to maintain Clear RGUs level with 2010 as a result of the constant effort to improve the offers available to customers, e.g. giving new customers a sign-up benefit and adding free HD channels. At the beginning of 2011, the subscription fees were raised, reflecting a wider range of TV channels and increasing content costs. The price increase had only a limited effect on the customer’s choice of TV packages and the downward migration from the full packages to medium or basic were kept at a minimum. These circumstances positively affected ARPU, which grew by 6.4%. All in all, revenue from YouSee Clear rose by 6.9% in 2011 compared with 2010. Revenue split, YouSee Internet services 19.9% YouSee Plus 4.8% Landline telephony 2.3% Other 6.6% YouSee Clear 66.4% TDC Group Annual Report 2011 YouSee Plus In an effort to continuously improve and expand the offers available to YouSee Plus customers, YouSee launched the ‘100 films’ campaign, giving subscribers access to 100 films at no extra charge. This has been a success with approximately 308,000 films streamed since the launch and generally customers have increasingly been using video-on-demand, with rentals reaching approximately 1,124,000 in 2011, an increase of 167%. The ability to decide when to watch TV is also of great importance to YouSee Plus customers and the number of start-over events reached 3.1m compared with 1.7m in 2010. Combined with the major effort to improve network capacity and establish return paths, this is continuously reducing YouSee Plus churn. During 2011, YouSee Plus gained net adds totalling 25,000. However, as the card fee paid by 26,900 customers was removed in Q4 to eliminate barriers for ‘Extra channels’, the RGU base was reduced by 2.5% compared with 2010. These customers, who have retained a card, can purchase on-demand services from YouSee at any time. Despite higher copyright fees and customers choosing fewer and less expensive additional TV packages, YouSee Plus revenue rose by 10.2% compared with 2010. Internet services Despite fierce competition in a saturated broadband market, YouSee succeeded in continuing its strong performance and is one of the few companies gaining market shares, with RGUs up by 2.5%. The demand for higher bandwidths contributed to YouSee gaining market share. More customers on higher bandwidth were reflected in an ARPU increase, which positively affected revenue from internet services that rose by 3.5% compared with 2010. 49
Page 1 and 2: 2011 Group Annual Report
Page 3 and 4: TDC Group Annual Report 2011 Accomp
Page 5 and 6: While our business is less impacted
Page 7 and 8: Revenue The TDC Group’s revenue i
Page 9 and 10: Profit for the year Profit for the
Page 11: Guidance 2011 TDC published financi
Page 14 and 15: TDC during 130 years TDC turns 130
Page 16 and 17: Internet The four regional telephon
Page 18 and 19: TDC Group Annual Report 2011 “The
Page 20 and 21: TDC today Profile TDC is the leadin
Page 22 and 23: Product lines In a rapidly changing
Page 24 and 25: Innovations in TDC in 2011 TDC is a
Page 26 and 27: TDC’s mission, vision and values
Page 28 and 29: Strategy 2012 Customer satisfaction
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Page 32 and 33: TDC’s homedisk stores 320,000 GB
Page 34 and 35: Consumer 2011 at a glance • Consu
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Page 38 and 39: Performance in 2011 Revenue The bus
Page 40 and 41: Business partners & colleagues Cope
Page 42 and 43: Nordic 2011 at a glance • Solid r
Page 44 and 45: Gross profit The gross profit growt
Page 46 and 47: Performance in 2011 Revenue Wholesa
Page 50 and 51: Gross profit YouSee’s gross profi
Page 52 and 53: Performance in 2011 In 2011, Operat
Page 54 and 55: In 2011, TDC showed its ability to
Page 56 and 57: Shareholder information Policy TDC
Page 58 and 59: Share price In a challenging market
Page 60 and 61: TDC has 2,550 3G sites in Denmark,
Page 62 and 63: Regulation Overview The summary bel
Page 64 and 65: Risk factors TDC is faced with both
Page 66 and 67: Risk Description and impact Mitigat
Page 68 and 69: Corporate Social Responsibility 201
Page 70 and 71: Corporate Social Responsibility The
Page 72 and 73: of life of the individual patients
Page 74 and 75: At TDC, we continued to increase th
Page 76 and 77: Red Cross for vulnerable population
Page 78 and 79: YouSee and TDC in combination deliv
Page 80 and 81: Corporate Governance Recommendation
Page 82 and 83: Management Corporate Management Tea
Page 84 and 85: Board of Directors Vagn Sørensen C
Page 86 and 87: Jan Bardino Age 59. Elected by the
Page 88 and 89: Coax refers to a technology based o
Page 90 and 91: data, which may vary in accuracy. A
Page 92 and 93: Financial Statements 2011
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TDC Group Annual Report 2011 Consol
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TDC Group Annual Report 2011 Assets
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TDC Group Annual Report 2011 Consol
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Notes to Consolidated Financial Sta
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interests is recognised in equity.
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Special items Special items include
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account exceeding the amount capita
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Assets or disposal groups classifie
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Note 3 New accounting standards At
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Note 4 Segment reporting For a desc
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TDC Group Annual Report 2011 Geogra
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TDC Group Annual Report 2011 Remune
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TDC Group Annual Report 2011 Deferr
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TDC Group Annual Report 2011 Note 8
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TDC Group Annual Report 2011 Net fi
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Reconciliation of effective tax rat
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TDC Group Annual Report 2011 is bas
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Land and buildings Telecommun icati
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TDC Group Annual Report 2011 Treasu
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TDC Group Annual Report 2011 Net in
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Maturity profiles 1 Financial asset
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exceed 25% in year two, 30% in year
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Financial transactions are only ent
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Other risks of capital contribution
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TDC Group Annual Report 2011 Sensit
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C: Pensions for former Danish civil
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TDC Group Annual Report 2011 Assets
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Note 35 Overview of Group companies
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Note 39 Research and development co
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Five year overview TDC Group Annual
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Cover photo: NW Copenhagen Translat
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TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

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